Hyperliquid

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<h2 id="span-style-font-size-16px-span-style-color-inherit-font-weight-bolder-hip-3-on-hyperliquid-how-b-span-span-style-color-inherit-font-weight-bolder-span-span-style-color-inherit-font-weight-bolder-span-span-style-color-inherit-font-weight-bolder-uilder-markets-work-span-span">HIP-3 on Hyperliquid: How Builder Markets Work</h2>
HIP-3 Hyperliquid &nbsp;lets outside teams launch their own perpetual futures markets on Hyperliquid. It went live on mainnet on 13 October 2025. Markets now cover stocks, commodities, indexes, and more. It has become a big story in<a href="https://www.coingabbar.com/en/crypto-currency-news" rel="noopener noreferrer nofollow">crypto news</a> this year. This guide explains how it works, what builders must put up, and where the risks lie.
<h3 id="span-span-style-font-size-16px-how-builder-markets-work-in-practice-span-span">How Builder Markets Work in Practice</h3>
HIP stands for Hyperliquid Improvement Proposal. It is how the network adds major features. A perpetual futures contract, or “perp,” tracks the price of an asset and never expires. New to these terms? The<a href="https://www.coingabbar.com/en/crypto-dictionary" rel="noopener noreferrer nofollow">crypto dictionary</a> covers the basics.
Before HIP-3, the core team chose which perps got listed. Now a qualified builder can run its own perp exchange inside HyperCore, the network’s trading engine. The builder picks the asset, the oracle, the leverage limits, the fees, and how settlement works. An oracle is a data feed that tells the market an asset’s price. Oracle trust is a common theme in<a href="https://www.coingabbar.com/en/chainlink-news-archax-govy-treasuries-collateral" rel="noopener noreferrer nofollow">Chainlink and oracle news</a>.
Order matching, margin, and liquidations still run on shared HyperCore systems. So a HIP-3 market uses the same engine as the main crypto perps. The builder just defines the market.
<h3 id="span-span-style-font-size-16px-rules-for-deploying-a-market-span-span">Rules for Deploying a Market</h3>
Per the<a href="https://hyperliquid.gitbook.io/Hyperliquid-docs/hyperliquid-improvement-proposals-hips/hip-3-builder-deployed-perpetuals" rel="noopener noreferrer nofollow">official Hyperliquid documentation</a>, a mainnet deployer&nbsp;of a HIP-3 Hyperliquid mmarket&nbsp;must stake 500,000 HYPE, the network’s native token. Staking means locking tokens as a security deposit. The rule applies to the whole exchange, not to each market inside it.
The first three assets on any exchange skip the auction. After that, assets go through a Dutch auction. In this type of auction, the price starts high and falls until someone accepts it. All builder exchanges share the same auction.
The deposit can also be cut. Validators can slash a deployer’s stake by vote if a market is run in a harmful way. The stake stays at risk during the seven-day unstaking queue. Slashed tokens are burned. They are not paid to affected traders.
<div>
 <table>
 <colgroup>
 <col width="135">
 <col width="277">
 </colgroup>
 <tbody>
 <tr>
 <td>Item</td>
 <td>Detail</td>
 </tr>
 <tr>
 <td>Mainnet launch</td>
 <td>13 October 2025</td>
 </tr>
 <tr>
 <td>Stake per deployer</td>
 <td>500,000 HYPE</td>
 </tr>
 <tr>
 <td>Auction rule</td>
 <td>First three assets skip the auction</td>
 </tr>
 <tr>
 <td>Later assets</td>
 <td>Shared Dutch auction</td>
 </tr>
 <tr>
 <td>Fee level</td>
 <td>Twice the standard perp fee (as reported)</td>
 </tr>
 <tr>
 <td>Deployer share</td>
 <td>Up to 50% of fees</td>
 </tr>
 </tbody>
 </table>
</div>
<h3 id="span-span-style-font-size-16px-fees-open-interest-and-concentration-in-2026-span-span">Fees, Open Interest, and Concentration in 2026</h3>
Reports say&nbsp;markets charge twice the fees of validator-run perps. Deployers can keep up to half of that revenue.
Open interest is the value of positions that are still open. It shows how much a market is used. On 16 October 2026, stock, index, ETF, and valuation-linked markets held about $3.029 billion in open interest, per a market data report. That covered ten known deployments and 124 mapped markets. You can follow related trends in our<a href="https://www.coingabbar.com/en/best-crypto-exchanges-october-2026" rel="noopener noreferrer nofollow">exchanges coverage</a>.
Still, activity sits with very few players. A June 2026 research study found that one builder, trade.xyz, held over 90% of HIP-3 open interest. A Q3 2026 review said the same builder earned 97.9% of HIP-3 fee revenue on $251.3 billion in volume. Other deployers remain small. Numbers differ by source and period, so check live data.
<h3 id="span-span-style-font-size-16px-hip-3-adds-optional-permissioned-markets-span-span">HIP-3* Adds Optional Permissioned Markets</h3>
On 3 September 2026, Hyperliquid announced HIP-3*. It is a set of optional features for deployers, planned for a future upgrade. In the early design, a deployer can keep a <a href="https://www.coingabbar.com/en/crypto-blogs-details/best-multi-chain-wallets-2026-top-choices-for-crypto-holders" rel="noopener noreferrer nofollow">chain allowlist of wallets</a> that may trade a market. An appointed sub-deployer can do this too.
Reports say it is live on testnet. No mainnet date is confirmed. Existing markets will not change. Open markets can run without an allowlist.
Some coverage linked the change to possible regulated access for certain deployers. The announcement calls deployers independent operators. They must meet their own requirements. For more protocol changes, see our<a href="https://www.coingabbar.com/en/blockchain/crypto-news" rel="noopener noreferrer nofollow">blockchain news</a> section.
<h3 id="span-span-style-font-size-16px-regulatory-questions-span-span">Regulatory Questions</h3>
In the US, the CFTC adopted a<a href="https://www.cftc.gov/PressRoom/PressReleases/pr9242-26" rel="noopener noreferrer nofollow">policy statement on perpetual contracts</a> on 29 May 2026.&nbsp;
It was later<a href="https://www.federalregister.gov/documents/2026/06/03/2026-11020/policy-statement-concerning-the-listing-of-perpetual-contracts" rel="noopener noreferrer nofollow">published in the Federal Register</a>. The statement encourages firms to voluntarily submit perps tied to equities and metals for case-by-case review. That same day, the agency approved one registered exchange’s bitcoin perp contract.
A market report dated 20 October 2026 stressed that this approval did not cover HIP-3 markets. It also did not cover access to trade.xyz, which limits US access to its interface. The legal status of tokenized stock perps is still open.
The agency’s guidance on virtual currency trading warns that leverage raises risk. It also says no strategy is guaranteed. A separate resource lists 14 digital asset risks, such as cyber, market, and fraud risks. Neither document speaks to HIP-3 directly.
<h3 id="span-span-style-font-size-16px-main-risks-to-weigh-span-span">Main Risks to Weigh</h3>
&nbsp;HIP-3 Hyperliquid&nbsp;perps use leverage. That means a trader holds a bigger position than the cash they put in. Small price moves can trigger liquidation, which is the forced closing of a position. Each market also relies on its builder’s oracle. A faulty price feed can hurt traders. New markets often have thin liquidity too.
Builders face risk as well, since a large HYPE stake can be slashed. Legal rules are still taking shape. Statements from the project are claims, not independent proof. A good first step is to read a market’s rules before you trade. More explainers are collected in our<a href="https://www.coingabbar.com/en/crypto-currency-blogs" rel="noopener noreferrer nofollow">crypto blogs</a>.
<h3 id="span-span-style-font-size-16px-what-analysts-are-saying-span-span">What Analysts Are Saying</h3>
A June 2026 study pointed to a paradox. HIP-3 open interest passed $3 billion, yet over 90% sat with one builder. That weakens the idea of a widely spread ecosystem. A Q3 2026 review saw the framework as a steady fee source for the base network. Both are readings of public data. They are not guarantees, and neither is investment advice.
<h3 id="span-span-style-font-size-16px-what-to-watch-next-span-span">What to Watch Next</h3>
The next confirmed milestone is the mainnet release of HIP-3*. No date has been announced. Live open interest, builder concentration, and any CFTC review of equity-linked perps are also worth tracking as the HIP-3 Hyperliquid&nbsp;markets grow.
Disclaimer: This article is for information only and is not financial advice. Crypto assets are volatile and carry risk, including loss of capital. Do your own research before making any investment decision.

HIP-3 Hyperliquid Explained: How Builder Markets Work

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